A Chat with Israel's Minister of Communications
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David Schatsky | October 22, 2007, 09:31 AM
I've been prodded to provide more information on my recent business trip to Israel, so I'll write about my meeting with Ariel Atias, Minister of Communications.
It was interesting to hear first-hand from the government official responsible for a telecom sector that is at once relatively small (there are just 7.7 million inhabitants of Israel) but whose technology innovations have impact around the world (some hundreds of companies, both start ups and local branches of multinational companies, are developing telecom-related technologies in the country).
According to data provided by the Ministry at the end of last year, cable TV home-pass extends to 97% percent of households, and about 48% of all households subscribe (of those, 78% receive digital service). Twenty-nine percent of households subscribe to the (digital) satellite TV service operated by “Yes.” Broadband penetration is 62% of households and mobile penetration is a healthy 106%.
Mr. Atias's primary concerns are ensuring technology leadership, vigorous competition and a favorable climate for consumers. To that end:
Number portability (which will allow subscribers to take their numbers with them between phone companies within three hours of making the request) is due to take effect on December 1 of this year, after an original start date of September 2006 was delayed several times because local phone companies were unable to meet the deadline.
After a detailed study of Israeli and foreign market conditions, the Minister has decided to grant licenses for MVNOs within the next 5 months.
The Minister also told me that wireless carriers would soon no longer be able to require consumers to sign contracts for any longer than 12 months.
Mr. Atias acknowledges that he's not especially popular with the carriers.
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